AT&T late Sunday confirmed previous reports and announced plans to pay $48.5 billion to buy DirecTV, as the wireless industry and the U.S. television market keep converging as users consume more video on their mobile devices.

AT&T will acquire DIRECTV in a stock-and-cash transaction for $95 per share based on AT&T's Friday closing price. The agreement has been approved unanimously by the Boards of Directors of both companies.

DIRECTV is a pay TV provider in the United States and Latin America.

AT&T and DirecTV made their announcement just a few months after Comcast Corp offered $45 billion for Time Warner Cable, a transaction that would create the leading U.S. cable and broadband Internet powerhouse.

The combined company will be a content distribution leader across mobile, video and broadband platforms.

"This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens ? mobile devices, TVs, laptops, cars and even airplanes. At the same time, it creates immediate and long-term value for our shareholders," said Randall Stephenson, AT&T Chairman and CEO. "DIRECTV is the best option for us because they have the premier brand in pay TV, the best content relationships, and a fast-growing Latin American business. DIRECTV is a great fit with AT&T and together we?ll be able to enhance innovation and provide customers new competitive choices for what they want in mobile, video and broadband services. We look forward to welcoming DIRECTV?s talented people to the AT&T family."

DIRECTV will continue to be headquartered in El Segundo, California, after the deal closes.